Nonresident sales form required with applicable Allianz 365i Annuity sales

The Allianz 365i^SM Fixed Index Annuity launched on January 31. With this launch, Allianz Life Insurance Company of North America (Allianz) will also require a new Nonresident Sales form (49KB PDF). The form is required with the Allianz 365i Annuity application any time a resident of one state purchases the product outside of that state. (For example, a resident of North Carolina purchasing the Allianz 365i Annuity in South Carolina would be required to complete and sign the form.)

The form is only required for applicable Allianz 365i Annuity sales at this time.

Please read below for additional information.

Why is this form required?

States are becoming more protective when it comes to the sale of insurance products to their residents. In fact, some states prohibit nonresident sales to their residents regardless of reason (AR, MA, MN, MS, UT, and WI). Two other states, NY and WA, allow sales in another state to their residents, but require all aspects of the sale to take place outside of NY and WA. States are taking action against insurance companies and financial professionals for violating their laws. This form is being added to protect financial professionals, your clients and Allianz.

bWhen is the form required?

This form is required for any Allianz 365i Annuity sale to a client outside of their resident state. It is required at the time of application and must be completed, dated, and signed by the financial professional and the client. The Nonresident Sales form takes the place of the New York Cross-border Sales form. The form is only required on the Allianz 365i Annuity at this time.

The form will be rolling out nationally to all financial professionals and on all products in the coming months. At that time, submission of the form will be a pre-issue requirement, meaning it must be received by Allianz before the contract will be issued or commissions paid.

Note: The following states prohibit nonresident sales to their residents regardless of reason: AR, MA, MN, MS, UT and WI. This means that sales will not be processed regardless of the form being submitted.

What happens if I submit an Allianz 365i Annuity application without the Nonresident Sales form?

If the form is not received with the Allianz 365i application, Allianz will temporarily be making phone calls to financial professionals to discuss the need for the form. Based on the facts and circumstances, Allianz will issue the contract and pay commissions prior to receipt of the form. However, the form will be a delivery requirement.

What do I need to know when completing the form?

First and foremost, as always, financial professionals must always ensure the Allianz 365i Annuity is suitable. For nonresident sales:

• Ensure the resident state of the owner is not one of the prohibited states (AR, MA, MN, MS, UT, WI).
• Ensure the owner has a connection to the resident state (this is sometimes referred to as “material interest”).

  Acceptable reasons for purchasing a contract outside of the owner’s resident state include the following:

• The owner has a second residence in the state (own/rent).
• The owner is employed in the state or has regular business dealings in the state.
• The owner is different than the insured/annuitant and the sale took place in the resident state of the insured/annuitant.
• The owner is a family member or has a business relationship with the financial professional and the sale took place in the state of the financial professional.
• The owner is a trust and the sale was conducted in the resident state of the trustee or the situs state of the trust.

The owner has power of attorney (POA) acting on his/her behalf and the transaction was conducted in the resident state of the POA.

Note: It is never acceptable to sell a product to a client outside of their resident state if there is no material interest/connection to that state.

• Ensure the form is completed, signed, and dated by the financial professional and the client. Then simply submit the form with application.

Where can I find the form?

For your convenience, you may download the form here. You can also find the form on the Forms and Materials page of our website beginning January 31. Simply enter the state, then choose “Annuities” and “Allianz 365i Annuity” as your product choices in the dropdown menu. The Nonresident Sales form will be listed under “New Business Forms” as a required document.